In our PR world, we all know that the private and public sectors are always squeezing every last drop of value out of their budgets and that is clearly not about to change.  The PR alarm bell is ringing, but here’s the question, whose is ringing the loudest?

Is it the in-house team which constantly has to justify its headcount and spends a lot of time making sure the precious press cuttings go round so that other business units can see what they’re doing?

Or is it the PR consultancy, which is managing its client’s brand as required and achieving agreed targets, but which can be dropped like a hot potato as a relatively easy short term cost-saving measure?

In-house teams have an intimate knowledge of their company and they understand the ethos of the business. They will hopefully have a representative in the boardroom. Middle management knows them, knows they can deal with the media and can turn to them for support in small projects which might not otherwise win any plaudits.

But in-house teams may have become part of the corporate furniture, the comfy chair that everyone puts their feet on rather than the functional mirror which serves to remind the business how others see them and what they have to do when the reflection isn’t so good. 

On the other hand, consultancies are focussed. They do the job required and clients know how much it will cost them. They can build relationships with executives which are no less meaningful and successful than those in-house.

Consultancies bring a fresh perspective and wider experience to the role which an in-house team can’t always do, especially in the fast-developing world of social media PR.

What’s more, consultancies don’t have that sense of security that comes with being in-house; they have to work hard to produce results and justify their role and cost to the client.

Of course, cutting PR budgets at a time of economic hardship, is actually the last thing that businesses should be doing. PR can raise their profile among equally cost-conscious customers and create an environment where deals are done.

In any recession, as well as the casualties, there are also companies which are able to take advantage of the opportunities. For example, there’s less competition for media space thereby creating an opportunity to increase profile.

So the message is; if you’re a business, whether you use an in-house team or an external consultancy, make sure you keep that investment in PR and make sure it is working hard for its money.

On Saturday night I played pool and had a few beers at Hotel Du Vin with a load of old friends I havent seen in ages.  Several of them talked a little about business, and the contrast between their fortunes is really stark. 

One is a manufacturer of large fire vehicles said they were turning work away and had a full order book for 2 years.  One senior marketer for a firm of accountants was slashing budgets and saw the market as very grim.  An online publisher I spoke with hasnt had a better month than June, and sees record profits every month. 

Another couple who live in the States and run a large number of bridal franchises there are looking at opening their first UK operation, and are confused by the mixed picture they are seeing.  On the one hand, they see the TV reports and hear people here grumbling about how hard everyone is being hit.  On the other, they havent seen so busy in years (they live here in Harrogate part time), and are amazed at how many new high end retailers have come to town.  Its about time we started to realise that recession impacts on everyone, but some businesses turn it to their advantage.

Recession is here, but its throwing up as many opportunities as it is problems, and how we view the market, and adapt to tackle new challenges is going to be what seperates those who survive, or those who thrive.

Despite losing a few really good accounts for financial or restructuring reasons over the past quarter, we have won a good many more.  We saw another three new business enquiries last week, and another client win too, and we’ve upped our game to try and keep this trend going. 

Sure, if you have specific finance issues, or your have had firms go bust on you its not going to be as easy to try and take advantage of things, but lets not all throw in the towel, there are some big wins out there for those still in good shape, and with creative approach to the new landscape.